Rival Envelope has appointed insolvency practitioners to prepare a proposal for a Creditors Voluntary Arrangement (CVA), with the company the subject of ongoing legal proceedings.


A spokeswoman for insolvency practitioners Langley & Partners said Deptford-based Rival was working with its creditors on preparing a CVA, with a creditors meeting scheduled for 19 March.


An indemnity insurance company has commenced proceedings to recover a debt in excess of 70,000.


And specialist credit checking company ICSM Partnership is acting on behalf of an envelope company and an ink supplier to recover outstanding debts totalling over 4,000.


The company, which has a turnover in excess of 10m, employs around 110 people and is involved in the manufacture, wholesale, distribution and overprinting of envelopes.


According to the last set of accounts, filed in June last year, the companys pre-tax profits have fallen over the past few years to 494,000.


Long-term loans have also risen from 360,000 in 1996 to a high of 1.8m last year.


It is understood that the CVA will be sent to all creditors to be voted upon. It requires 75% approval for it to be processed.


Managing director Tony Collins, finance director Robert Binfield and sales director Joe Castle headed a management buyout of Rival in 1996.


Alan and Margaret Bartrop, who retired to Spain following the sale of the business, founded Rival Envelope Company in 1980.


No directors from Rival Envelope were available for comment as PrintWeek went to press.


Story by Andy Scott